Inside the wild world of corporate tax theory
Great Insight btw
I think this part of discussion needs more explanation: "In a standard optimizing model of the firm, a corporate income tax increases the user cost of capital and therefore reduces the demand for capital".
I think you mixed the New Keynesian Model with the neoclassical one. In the Neoclassical model the supply is vertical and the NK is horizontal
What (and who) in the world are we trying to tax when we tax corporate income?
Great Insight btw
I think this part of discussion needs more explanation: "In a standard optimizing model of the firm, a corporate income tax increases the user cost of capital and therefore reduces the demand for capital".
I think you mixed the New Keynesian Model with the neoclassical one. In the Neoclassical model the supply is vertical and the NK is horizontal